Government insiders say Mr Chan, a former MP and son of prominent Honiara businessman Sir Thomas Chan, is returning soon.
Although of ethnic Chinese origin and a resident of Honiara, Mr Chan was a former MP for South Guadalcanal before his appointment to the Taipei job.
Permanent Secretary of the Ministry of Foreign Affairs and Trade Beraki Jino said the ministry is aware of Mr Chan’s intention to resign.
However, he said they are yet to receive a formal letter of resignation from him
Mr Jino said if he eventually resigns, the government will have to make a replacement.
It was not known which constituency Mr Chan intends to contest.
By DANIEL NAMOSUAIA